Hot Industrial Complex, Gaesung
Is the Gaesung Industrial Complex a Korean gold rush region? At the beginning of the industrial complex, there were few factories or apartments, and it looked like a deserted city. However, owners of more than 20 Busan manufacturing companies, and over 200 small and mid-sized companies, attended a ground breaking ceremony for apartment complexes at Gaesung, and showed their strong interest in the area.
Local small and mid-sized companies currently face capital difficulties due to rapidly rising oil prices and the soaring Korean currency, but the Gaesung Industrial Complex is a district of promise for them, where it is possible that they can resume their competitiveness due to low labor costs. According to a source from the complex, they don’t need to buy a lot for building their factory, paying over one billion won, but just can rent the space.
The owner of Busan toy company, Hatnym, said, “It is indispensable for me to move my company to the Gaesung Industrial Complex for survival,” adding, “However, there is a necessary condition that other toy manufacturing companies also have to move together in order to achieve cost reduction and organic operations.” Footwear companies from Busan, such as SamDuck and Shinwon, have already doubled their factory areas.
Current wages of North Korean employees at Gaesung average 54,000 won per month, which is one twentieth of wages paid to workers from Southeast Asian regions. More importantly, even though their salary is the lowest in the world, their productivity reaches 80% of South Korean workers. According to experts, this plays an important role in attracting domestic companies to enter the industrial complex. The two Koreas plan to develop Gaesung as a city with a population of 700,000.
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 / 입력시간: 2006. 05.19. 08:50
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